The Board of Trustees (the "Board") of the Retirement Plan for Chicago Transit Authority Employees ("the Plan") has adopted a Brokerage Policy with the overall goal of requiring that its investment managers achieve best execution in their trading of Plan assets.
Within the framework of the Policy, the Board has adopted a Commission Recapture Program. The goal of this program is to have investment managers achieve best execution, while utilizing brokers that provide rebates to the Plan.
The Retirement Plan for CTA Employees also recognizes a commitment to the success of minority-owned, women-owned and disabled-owned businesses1, and to promoting opportunities for those businesses in the City of Chicago and the State of Illinois.
To meet that commitment, the Board has adopted a Directed Brokerage Program. The goal of this program is to have investment managers achieve best execution, while utilizing minority-owned, women-owned and disabled-owned brokerage firms.
The policy of the Plan with regard to its Commission Recapture Program is as follows:
Each investment manager shall submit a progress report to the Investment Consultant for the Plan on an annual basis no later than March 1st for the prior fiscal year. However, a manager may be asked to submit a report to the Board during the course of the year at the request of the Board.
If an investment manager fails to comply with the above guidelines, the manager may be scheduled to appear before the Board to explain why it was unable to achieve its goals.
The policy of the Plan with regard to its MWBE Directed Brokerage Program is as follows:
Subject to best execution, and where funds are not commingled, all Large-Capitalization Domestic Equity managers, Mid-Capitalization Domestic Equity Managers, Small-Capitalization Domestic Equity managers and International Equity managers shall participate in the Plan’s Directed Brokerage Program.